Turkish HMS 1/2 80:20 scrap import prices continue to decline to $325 a ton

TURKEY November 03 2014 10:40 AMTweet 
ANKARA (Scrap Register): Turkish HMS 1/2 80:20 scrap import prices (CFR Iskenderun Port, Turkey) continued to decline by $7 a ton week-on-week to $325 a ton in the week ended October 31, as per the latest figures released by the The Steel Index.

According to TSI, daily benchmark index for deep-sea Turkish imports of HMS #1&2 80:20 fell by $6 a ton from last Friday, to finish the week at $323 a ton CFR Iskenderun port.

All bets are now off as to where the market will eventually bottom out, with sub-$300 a ton pricing now being talked about as a realistic, albeit unlikely, prospect.

Despite rebar to scrap margins being relatively healthy at present, Turkish rebar is simply still not competitive even at $535 a ton.

Finished steel prices may need to fall further to stoke demand. The key for scrap pricing will be the point at which scrap collectors are no longer sufficiently incentivised to continue selling to exporters.